Josepha Madigan (Dublin Rathdown, Fine Gael) | Oireachtas source

The climate action plan does set out ambitious targets to retrofit the equivalent of 500,000 homes to a building energy rating of B2-cost optimal and the installation of 400,000 heat pumps in existing homes to replace older, less efficient heating systems by the end of 2030. The national retrofit plan sets out the Government's approach to achieving these targets.

Fairness, universality, and customer centricity are three of the key principles of the national retrofit plan.In line with these principles, the plan recognises that supports are necessary to help households vulnerable to energy poverty to retrofit their homes. The warmer homes scheme, which provides fully-funded energy upgrades for households at risk of energy poverty, is a critical support in that regard.

Increased awareness of the multiple benefits of retrofit and significant improvements to the upgrades provided under the warmer homes scheme has resulted in increased levels, as the Senator said, of demand for this scheme in particular. Approximately 24,000 applications were received by the SEAI in 2022 and 2023. More than 1,600 additional applications were received in January of this year.

The depth and complexity of retrofits provided under the scheme have also increased significantly in recent years. This can be seen in the average cost of upgrades provided, which increased from €2,600 in 2015 to €24,000 last year. Last year, we saw very strong growth in the delivery of energy upgrades under the scheme, with 5,900 homes upgraded. This was an increase of 33% on the number delivered in 2022.

The average waiting time from application to completion of upgrade works for homes completed in 2023 was just under 20 months, which is a decrease from average of 26 months for homes completed in 2022. It is a six-month reduction. The reduction in wait times follows a range of measures introduced by the Department and the SEAI, including: additional staff who have been allocated to the SEAI for the warmer homes scheme; a significantly increased budget allocation; SEAI work to increase contractor output through active contract engagement and management; and actions to address ongoing supply chain and inflationary pressures. In addition, the SEAI established a new €700 million contractor panel in September 2023, which is in place for the next four years. This added seven additional contractors, bringing the total number operating on the panel to 36. The overall spend for 2023 was €157.4 million, which is the highest ever to date under the scheme.

It is also important to note that the worst performing homes are prioritised under the scheme following a Government decision in 2022. This means that homes rated E, F or G on the building energy rating scale are prioritised for works before those with better energy ratings. This also means the support is reaching the homes and households most likely to be affected by energy poverty faster.

In order to further increase the impact of this prioritisation, the SEAI will shortly be going to tender to expand the capacity to carry out BER assessments under the scheme. This year, the budget for the scheme is increased to nearly €210 million. This is the largest allocation ever for this scheme and will support even more households at risk of energy poverty with energy upgrade works in their homes. This includes funding from the European Regional Development Fund.